In Brief
A contractor for repair works submitted a final bill with a no-claims certificate in 2002, but payment was delayed for over a year. He later sought arbitration claiming additional amounts not in the final bill. The arbitrator allowed some claims, but the employer appealed under Section 34 of the Arbitration Act, citing contractual clauses prohibiting claims after final bill submission. The District Judge allowed the appeal; the High Court reversed it. The Supreme Court upheld the contractual prohibitions as binding, finding no evidence the final bill was vitiated by duress. However, it exercised discretionary jurisdiction to award a lump sum of Rs. 3 lakhs as full and final settlement, considering the long payment delay and meagre amounts involved.
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